Market/economic insight: the weekly brief (November 26th – 30 November 2018)

Market insight
Market insight

The performance of the Nigerian Equity Market remain bearish last week with the index (NSE ASI) down by 2.54% WTD to close at an index level of 30,874.17 and Market capitalization of N11.27 trillion.

The Sectoral performance was negative as bearish sentiments were witnessed in all sectors with the exception of Insurance and Consumer Goods Sectors up by 4.71% and 0.08% WTD respectively. However, the Oil and Gas sector recorded the highest decrease amongst NSE indices with the index down by 5.12% owing to significant price depreciation in SEPLAT (-9.68%) and ETERNA (-6.67%).

Bua group

Market activities were characterised by profit taking on 4 out of 5 trading sessions with sell offs well pronounced on the Oil and Gas counter as Oil price continued on its downward trend.

In the global space, all selected equities closed positive asinvestors were optimistic that the U.S. and China could settle their trade differences following a meeting between President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Argentina.

Stock Watch

Over the last five trading sessions:
SEPLAT (Seplat Petroleum Dev. Company) fell by 9.68% to close at N589.50.
Recommendation: We maintain a hold rating on this stock.
FBNH (First Bank of Nigeria Holdings) fell by 6.58% to close at N7.10.
Recommendation: We maintain a buy rating on this stock.
GUARANTY (Guaranty Trust Bank) fell by 5.63% to close at N34.35.
Recommendation: We maintain a buy rating on this stock.
ZENITHBNK (Zenith Bank) fell by 3.33% to close at N24.00.
Recommendation: We maintain a buy rating on this stock.

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